Stellantis Takes Full Ownership of Thiruvallur Plant to Ramp Up Output by Over 160%

Global automaker Stellantis has taken 100% ownership of its manufacturing operations at Thiruvallur in Tamil Nadu after buying out the remaining equity stake held by Hindustan Motor Finance Corporation Ltd (HMFCL), a CK Birla Group entity.

The transaction, executed through the Foreign Direct Investment (FDI) route, formally ends the joint venture structure in Stellantis Automobiles India Private Limited (SAIPL) and gives the multinational automaker unfettered managerial and operational control over the facility.

Strategic Capacity Ramp-up

With outright control secured, Stellantis has outlined an aggressive multi-year production increase. The company is targeting an output increase exceeding 160%, aiming to elevate manufacturing volumes from current run-rates of 16,000 to 18,000 units in 2026 to over 43,000 to 50,000 units annually over the next few years.

A substantial portion of this output will cater to overseas demand, solidifying the plant's position within Stellantis' global manufacturing footprint. The facility already serves as an export base, supplying finished passenger vehicles to eight international markets across four continents.

The capacity expansion is set to stimulate regional employment:

• The direct shop-floor workforce at the Thiruvallur plant is projected to more than double from its baseline of 610 employees.
• Additional indirect employment is projected to expand across logistics, freight handling, and ancillary component vendors situated in Tamil Nadu's industrial automotive belt.

Manufacturing Footprint and Deep Localisation

Stellantis and the CK Birla Group had originally entered into a manufacturing partnership in 2017, initiating vehicle assembly operations at the Thiruvallur site in 2021. The facility is currently dedicated to producing four models under the Citroën banner: the Citroën C3, the all-electric ë-C3, the C3 Aircross, and the newly launched Basalt.

Through targeted engineering investments and domestic vendor integration, vehicle manufacturing at Thiruvallur has surpassed 95% localisation, cushioning the brand against foreign currency fluctuations and import tariff disruptions.

Cumulatively, Stellantis has invested over €1 billion (approximately ₹11,000 crore) across its Indian operations, spanning local manufacturing footprint, research and development, software development centers, and powertrain facilities.

Management Commentary and Investor Impact

Speaking on the buyout, Shailesh Hazela, Chief Executive Officer and Managing Director of Stellantis India, highlighted the strategic importance of the subcontinent in the parent company's long-term roadmap:

"India remains a key pillar of Stellantis' growth strategy. Having invested close to ₹11,000 crore in the country to build a strong manufacturing, engineering, and export ecosystem, we continue to see significant opportunities ahead. This milestone will enable greater integration and enhance our ability to respond more quickly to customer and market needs."

For domestic auto ancillary manufacturers and market participants, the buyout sends three distinct signals:

Supply Chain Orders: The planned tripling of volume output will translate directly into larger procurement books for domestic Tier-1 and Tier-2 component makers operating in engine peripherals, chassis, interiors, and EV battery packaging.

Export Competitiveness: With full operational autonomy, Stellantis can align the Thiruvallur plant directly with upcoming Free Trade Agreements (FTAs) signed by India, enhancing export arbitrage against higher-cost European or Latin American facilities.

Corporate Restructuring: The exit marks the complete monetisation of vehicle manufacturing equity for the CK Birla Group from this partnership, allowing HMFCL to redeploy capital into other core engineering and precision manufacturing businesses.

Tags: Stellantis CK Birla Group Automobile Sector Foreign Direct Investment Tamil Nadu Manufacturing Citroën India